Energy flexibility: The manufacturing advantage hiding in plain sight

Digitisation and AI drove the agenda at the Manufacturing Leaders’ Summit. But while energy flexibility may not be front of mind, it’s a vital component in power resilience and efficiency across all manufacturing.

Manufacturers are rightly focused on the role of data and digitisation in lean manufacturing. Data is driving tighter integrations and streamlined delivery throughout the supply chain, and the factory of the future is built on technologies like AI, the internet of things and advanced robotics.

But in the rush to understand and implement cutting-edge solutions, business leaders might be squandering an easy win. Lacking granular data on energy consumption, and resigned to high costs as a fact of life, manufacturers are missing out on the potential to optimise energy use. At the same time, they’re unable to exploit the revenue and competitive advantage to be gained through energy flexibility.

This was very much my impression at the Manufacturing Leaders’ Summit, where I was lucky enough to meet with the industry leaders shaping the future of manufacturing. Their engagement and curiosity about unlocking new revenue streams while strengthening energy security made for some of the most valuable conversations of the event. But how can energy flexibility help deliver on these themes?

Electricity grids have always had to grapple with variable demand and generation, but as the UK and Irish grids adapt to the peaks and troughs of renewables, this balancing act has become more acute. Through energy flexibility programmes, large energy users can get paid to help grid operators balance the system at times of grid stress. By adjusting their energy use when required they help prevent blackouts and reduce the need to call up fossil-fuelled peaker power plants.

Energy flexibility isn’t well understood within manufacturing, though. Plant operators want the maximum return on their investment, and are focused on operational efficiency as the route to delivery. In many cases equipment doesn’t provide visibility on energy use, so operators don’t have insight into the machinery and processes driving their big energy bills.

Yet investors, customers and end users are seeking increased sustainability throughout the supply chain. Manufacturers are under new pressures to account for – and reduce – emissions. At the same time, efficiency and uptime remain paramount: understanding and managing energy use can be key to maximising both.

Almost every factory has equipment that can be curtailed, turned up, or otherwise tuned to participate in a flexibility programme. For example, machinery may be able to operate more slowly, and non-time-critical processes may be deferrable. It’s often possible to turn off heating or refrigeration for a short period without impacting production, and without damaging ingredients, components or finished products.

Far from being a challenge to operational resilience and efficiency, energy flexibility can be the driving force for increased resilience, lower emissions, and new revenue within manufacturing. Participation in energy flexibility schemes helps stabilise the grid and prevent blackouts. It also helps grids support more renewables, and through them offer a reduction in carbon emissions for all users.

Perhaps most interestingly for manufacturers, the revenue generated through participation in energy flexibility can provide the catalyst for a deeper understanding of energy within the facility. By funding improvements in metering and monitoring, money raised through flexibility provides energy visibility. This gives leaders the insight necessary to optimise energy use within new, lean manufacturing models, further lowering costs and improving sustainability.

The Manufacturing Leaders’ Summit was a brilliant opportunity to connect with industry leaders, understand their challenges, and discuss how we could work in partnership to address manufacturing energy challenges. If you’d like to explore how Enel X can help you achieve your goals, get in touch with us today.